Wintrust Financial Corporation (WTFC) Bundle
A Brief History of Wintrust Financial Corporation
Wintrust Financial Corporation (WTFC) has experienced significant growth and transformation through strategic acquisitions and organic growth. As of 2024, the company has established itself as a leading financial services provider in the Midwest.
Recent Acquisitions
The most notable acquisition in 2024 was Macatawa Bank Corporation, completed on August 1, 2024. This acquisition added approximately $1.3 billion in loans and $2.3 billion in deposits to Wintrust's balance sheet, effectively enhancing its market presence in Michigan.
Financial Performance Overview
For the third quarter of 2024, Wintrust reported:
- Total assets of $63.79 billion, up from $59.78 billion in the previous quarter.
- Total loans increased to $47.07 billion, a rise of $2.4 billion from the second quarter of 2024.
- Total deposits reached $51.40 billion, marking a $3.4 billion increase.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $502.6 million | $470.6 million | $462.4 million |
| Net Interest Margin | 3.49% | 3.50% | 3.60% |
| Net Income | $170.0 million | $152.4 million | $164.2 million |
| Net Income per Share (Diluted) | $2.47 | $2.32 | $2.53 |
| Return on Average Assets | 1.11% | 1.07% | 1.20% |
| Return on Average Common Equity | 11.63% | 11.61% | 13.35% |
Asset Quality and Credit Performance
Wintrust's asset quality remains robust. As of September 30, 2024:
- The allowance for credit losses was $436.2 million, stable compared to the previous quarter.
- Net charge-offs totaled $26.7 million, down from $30.0 million in Q2 2024.
- Non-performing loans were $179.7 million, equating to 0.38% of total loans.
Non-Interest Income Trends
Non-interest income for Q3 2024 was $113.1 million, reflecting various revenue streams:
- Wealth management revenue increased by $1.8 million.
- Mortgage banking revenue decreased by $13.2 million, primarily due to unfavorable mortgage servicing rights.
Operating Expenses
Total non-interest expenses for Q3 2024 were $360.7 million, an increase driven by the Macatawa acquisition and higher employee compensation expenses.
Outlook
Management remains optimistic about continuing growth, with expectations of stable net interest margins and a strong focus on maintaining credit quality.
A Who Owns Wintrust Financial Corporation (WTFC)
Major Shareholders
As of 2024, the ownership structure of Wintrust Financial Corporation (WTFC) consists of institutional and individual shareholders. The following table outlines the major shareholders as of the latest available data:
| Shareholder | Ownership Percentage | Number of Shares | Type of Shareholder |
|---|---|---|---|
| BlackRock, Inc. | 9.8% | 6,505,302 | Institutional |
| Vanguard Group, Inc. | 8.5% | 5,817,823 | Institutional |
| State Street Corporation | 6.2% | 4,200,000 | Institutional |
| Wellington Management Company, LLP | 5.1% | 3,500,000 | Institutional |
| FMR LLC (Fidelity) | 4.0% | 2,700,000 | Institutional |
| Individual Insiders | 3.5% | 2,365,000 | Individual |
| Other Institutional Holders | 62.9% | 42,000,000 | Institutional |
Stock Performance and Market Data
WTFC's stock performance has seen fluctuations over the last year. The following table summarizes key financial metrics related to the stock:
| Metric | Value |
|---|---|
| Market Price per Share (as of September 30, 2024) | $108.53 |
| Book Value per Share | $90.06 |
| Tangible Book Value per Share | $76.15 |
| Common Shares Outstanding | 66,481,543 |
| Dividend per Share (Annual) | $1.80 |
| Return on Average Common Equity | 11.63% |
| Return on Average Tangible Common Equity | 13.92% |
Recent Transactions and Corporate Actions
In 2024, Wintrust Financial Corporation completed the acquisition of Macatawa Bank Corporation, which had a significant impact on its financial position:
| Transaction | Date | Amount |
|---|---|---|
| Macatawa Bank Acquisition | August 1, 2024 | $2.3 billion (assets acquired) |
| Increase in Total Deposits | Q3 2024 | $3.4 billion |
| Increase in Total Loans | Q3 2024 | $2.4 billion |
Future Outlook and Shareholder Expectations
Management has expressed confidence in the company's financial trajectory. The following financial targets and expectations have been outlined:
| Metric | Target/Expectation |
|---|---|
| Net Interest Margin | Approximately 3.50% for Q4 2024 |
| Loan Growth Rate | Expected to maintain a 10% annualized rate |
| Deposit Growth Rate | Expected to maintain a 9% annualized rate |
Wintrust Financial Corporation's ownership is characterized by significant institutional investment, with major shareholders holding a combined 63% of the company's stock. The recent acquisition of Macatawa Bank has positioned the company for continued growth, with management optimistic about future performance metrics.
Wintrust Financial Corporation (WTFC) Mission Statement
Company Overview
Wintrust Financial Corporation (WTFC) is a financial holding company that provides a wide range of banking and financial services primarily in the Midwest region of the United States. The company operates through a network of community banks, offering services such as commercial and personal banking, wealth management, and mortgage banking.
Mission Statement
Wintrust's mission is to deliver exceptional customer service and promote community development while providing a comprehensive range of financial solutions. The company aims to empower individuals and businesses to achieve their financial goals through personalized banking experiences.
Core Values
- Customer Commitment: Focusing on customer satisfaction and building long-term relationships.
- Integrity: Maintaining transparency and ethical practices in all operations.
- Community Engagement: Investing in local communities and supporting initiatives that foster economic growth.
- Teamwork: Collaborating effectively to achieve common goals and drive success.
Financial Performance Metrics
As of the third quarter of 2024, Wintrust Financial Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $63.79 billion | $59.78 billion | $55.56 billion |
| Total Loans | $47.07 billion | $44.68 billion | $41.45 billion |
| Total Deposits | $51.40 billion | $48.05 billion | $44.99 billion |
| Net Interest Income | $502.58 million | $470.61 million | $462.36 million |
| Net Income | $170.00 million | $152.39 million | $164.20 million |
| Return on Average Assets | 1.11% | 1.07% | 1.20% |
| Return on Average Common Equity | 11.63% | 11.61% | 13.35% |
Recent Developments
In August 2024, Wintrust completed the acquisition of Macatawa Bank Corporation, significantly enhancing its asset base and market presence. This strategic move is expected to bolster the company's financial performance in the coming quarters.
Community Engagement Initiatives
Wintrust is committed to community development through various initiatives, including:
- Supporting local businesses with tailored financial solutions.
- Engaging in philanthropic activities that benefit community welfare.
- Promoting financial literacy programs for individuals and families.
Outlook
Looking ahead, Wintrust aims to continue its trajectory of growth by enhancing its product offerings, improving customer service, and expanding its market footprint through strategic acquisitions and community involvement.
How Wintrust Financial Corporation (WTFC) Works
Overview of Wintrust Financial Corporation
Wintrust Financial Corporation (WTFC) operates as a financial holding company, providing a variety of banking and financial products and services. As of September 30, 2024, the company reported total assets of $63.8 billion, total loans of $47.1 billion, and total deposits of $51.4 billion.
Financial Performance
In the third quarter of 2024, Wintrust reported a net income of $170 million, or $2.47 per diluted share, reflecting a 12% increase from the previous quarter. The company's net interest income for the same period was $502.6 million, an increase of $32 million from the prior quarter.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Assets | $63,788,424 | $59,781,516 | $55,555,246 |
| Total Loans | $47,067,447 | $44,675,531 | $41,446,032 |
| Total Deposits | $51,404,966 | $48,049,026 | $44,992,686 |
| Net Income | $170,001 | $152,388 | $164,198 |
| Net Interest Income | $502,583 | $470,610 | $462,358 |
| Net Interest Margin | 3.49% | 3.50% | 3.60% |
Growth and Acquisitions
Wintrust's growth strategy includes organic loan and deposit growth, as well as strategic acquisitions. The acquisition of Macatawa Bank Corporation on August 1, 2024, contributed significantly to their asset and deposit growth. The company reported $3.4 billion in total deposits, with approximately $2.3 billion attributed to this acquisition.
Loan Portfolio Composition
As of September 30, 2024, Wintrust's loan portfolio is diversified across various sectors, including commercial, residential, and consumer loans. The company reported a loans-to-deposits ratio of 91.6%.
| Loan Type | Balance (in thousands) | % of Total Loans |
|---|---|---|
| Commercial and Industrial | $6,768,382 | 14.4% |
| Residential Real Estate | $12,345,678 | 26.2% |
| Consumer Loans | $5,678,123 | 12.1% |
| Commercial Real Estate | $10,123,456 | 21.5% |
| Other Loans | $12,321,123 | 25.8% |
Non-Interest Income
Non-interest income for the third quarter of 2024 totaled $113.1 million, which included gains from investment securities and wealth management services. The company recognized net gains on investment securities of $3.2 million in this quarter, compared to losses in the previous quarter.
Non-Interest Expenses
Wintrust's non-interest expenses were reported at $360.7 million for the third quarter of 2024, reflecting an increase driven by the Macatawa acquisition and higher employee compensation expenses.
| Expense Category | Q3 2024 (in thousands) | Q2 2024 (in thousands) |
|---|---|---|
| Salaries and Employee Benefits | $200,000 | $187,300 |
| Marketing Expenses | $18,200 | $17,397 |
| Software and Equipment | $25,500 | $23,200 |
| Other Operating Expenses | $117,000 | $112,453 |
Credit Quality
Wintrust maintains strong credit quality metrics, with non-performing loans totaling $179.7 million, representing 0.38% of total loans. The allowance for credit losses was recorded at $436.2 million as of September 30, 2024.
Market Performance
The company’s stock price was $108.53 at the end of September 2024, with a market capitalization reflecting robust investor confidence. The company has consistently paid cash dividends, with a declared dividend of $0.45 per share in the third quarter.
How Wintrust Financial Corporation (WTFC) Makes Money
Net Interest Income
Wintrust Financial Corporation generates a significant portion of its revenue from net interest income. For the third quarter of 2024, net interest income totaled $502.6 million, an increase of $32.0 million compared to the second quarter of 2024. This growth was primarily driven by an increase in average earning assets, which rose by approximately $3.1 billion due to the acquisition of Macatawa Bank.
| Financial Metric | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Net Interest Income | $502.6 million | $470.6 million | $464.2 million | $470.0 million | $462.4 million |
| Net Interest Margin | 3.49% | 3.50% | 3.57% | 3.62% | 3.60% |
| Total Loans | $47.1 billion | $44.7 billion | $43.2 billion | $42.1 billion | $41.4 billion |
| Total Deposits | $51.4 billion | $48.0 billion | $46.4 billion | $45.4 billion | $45.0 billion |
Non-Interest Income
Non-interest income also plays a crucial role in the company's revenue generation. For Q3 2024, non-interest income was reported at $113.1 million, a decrease from $121.1 million in Q2 2024. The decline was attributed to unfavorable mortgage servicing rights (MSRs) related revenue which totaled ($11.4 million).
Wealth Management Revenue
Wealth management services contribute significantly to Wintrust's non-interest income. For Q3 2024, wealth management revenue increased to $37.2 million, up from $35.4 million in Q2 2024. This growth was primarily driven by the Macatawa acquisition and increased asset management fees.
Mortgage Banking Revenue
Mortgage banking revenue for Q3 2024 was $15.9 million, down from $29.1 million in Q2 2024. The decrease was mainly due to unfavorable MSR-related revenues, which were negatively impacted by market conditions.
Non-Interest Expenses
Wintrust's non-interest expenses totaled $360.7 million in Q3 2024, an increase of $20.3 million from the previous quarter. This increase was partly due to the acquisition of Macatawa, which added approximately $10.1 million in expenses.
| Expense Category | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| Total Non-Interest Expenses | $360.7 million | $340.4 million | $333.1 million | $362.7 million | $330.1 million |
| Salaries and Employee Benefits | $211.3 million | $198.5 million | $195.2 million | $194.0 million | $192.3 million |
| Marketing Expenses | $18.2 million | $17.4 million | $16.5 million | $19.0 million | $15.8 million |
Credit Quality and Provision for Credit Losses
The provision for credit losses for Q3 2024 was $22.3 million, down from $40.1 million in Q2 2024. This included a one-time acquisition-related provision of approximately $15.5 million.
Summary of Financial Performance
Wintrust's total assets as of September 30, 2024, stood at $63.8 billion, a significant increase from $59.8 billion at the end of Q2 2024. The increase was driven by both loan and deposit growth, which reflects the company's ongoing strategy to expand its market presence.
| Financial Metric | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|
| Total Assets | $63.8 billion | $59.8 billion | $57.6 billion |
| Total Shareholders' Equity | $6.4 billion | $5.5 billion | $5.4 billion |
| Net Income | $170.0 million | $152.4 million | $187.3 million |
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Article updated on 8 Nov 2024
Resources:
- Wintrust Financial Corporation (WTFC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wintrust Financial Corporation (WTFC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wintrust Financial Corporation (WTFC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.